Thematic Growth

Managed by Mott Capital Management, LLC

2.7% Last 30 days 0.8% Last 90 days 19.2% Last 365 days 2.24 Sharpe Ratio -4.1% Max Drawdown

Thematic Growth

Managed by Mott Capital Management, LLC

2.7% Last 30 days 0.8% Last 90 days 19.2% Last 365 days 2.24 Sharpe Ratio -4.07 Max Drawdown
Risk score
Strategy Stocks
AUM fee 1.5%
Requirements
• Investment minimum: $20,000
or Sign up to invest
Mott Capital Management uses a long-term thematic growth approach to investing in equities. We search for investments that both reflect and help to shape generational and demographic shifts. Mott uses a philosophy of buying these companies for a 3- to 5-year time horizon, with the belief that a long-term holding period gives themes and our chosen companies a chance to fully develop. In our view, the long time horizon also serves to mitigate the risk associated with the short-term impact of market volatility.

Research

Mott Capital uses top down analysis. We come up with a theme we would like to focus on and drill down to companies from there. We look at variety of things, from fundamentals, to technical. Most importantly, however, the company needs to have a good growth story. We NEVER use models of any kinds. They are useless in our opinion

Approach

Typically, the portfolio is constructed with a focus on 4 to 5 themes. Examples of themes vary and can range from the needs of aging populations to the shifting media landscape. With a 3 to 5 year investment outlook, we have the opportunity to develop a deep analytical understanding of each portfolio holding, and in some case build a personal relationship with the company. The overall portfolio is made up of 15 to 19 stocks, each receiving an approximately equal weighting of 5 percent, with an additional target cash balance of 5 percent. We do not use leverage, short positions or options: we strictly hold long positions in equities. In addition to using time to mitigate risk, we lever or de-lever the portfolio by increasing or decreasing the number of shares of each portfolio company to maintain consistency with our target range.

Allocation discipline

The overall portfolio is made up of 15 to 19 stocks, each receiving an approximately equal weighting of 5 percent, with an additional target cash balance of 5 percent.  We do not use leverage, short positions or options: we strictly hold long positions in equities.  In addition to using time to mitigate risk, we lever or de-lever the portfolio by increasing or decreasing the number of shares of each portfolio company to maintain consistency with our target range. We typically invest in stocks that have market caps greater than $1 billion and are fully transferable. We trade in stock listed on US exchanges only.

Sell discipline

We sell when the story of our investment has changed or determine that growth in a specific theme or company has matured.

Exceptions

None

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on December 13, 2017.

Daily returns
Performance
S&P 500
Manager (net of fees )
Last 30 days 2.7% 3.0%
Last 90 days 0.8% 6.7%
Last 365 Days 19.2% 17.2%
Since inception (Annualized) 3.4% 10.1%
2017 (YTD) 19.1% 18.9%
2016 -1.4% 9.5%
Risk metrics (last 365 days)
S&P 500
Manager (net of fees )
Volatility 8.0% 6.7%
Sharpe Ratio 2.24 2.37
Sortino Ratio 2.83 3.14
Maximum Drawdown -4.1% -2.8%
Value-at-risk (95%, 1 week) -1.9% -1.6%
Additional metrics (last 365 days)
vs. S&P 500
Information Ratio 0.4%
Alpha 3.00
Beta 0.92
R-Squared 0.6%
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About Mott Capital Management, LLC

Mott Capital Management uses a long-term thematic growth approach to investing in equities. We search for investments that both reflect and help to shape generational and demographic shifts. Mott uses a philosophy of buying these companies for a 3- to 5-year time horizon, with the belief that a long-term holding period gives themes and our chosen companies a chance to fully develop. In our view, the long time horizon also serves to mitigate the risk associated with the short-term impact of market volatility.

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily benchmark prices and do not include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on IB Asset Management on July 14, 2015.